Overcapacity superimposed on weak demand, the #pig market # trend weakened again, #futures # main contract showed an incremental increase in the decline trend, basically giving back the increase recorded in the previous two trading days, down 1.42% throughout the day, closing at 14190 yuan / ton. Trading volume increased to over 20,000 lots, and open positions increased by more than 1,800 lots to 68,000 lots.
The relative overcapacity of #Hog # suppresses prices, and large pig groups continue to accelerate expansion, and the overall target of the barn has increased significantly compared with last year. Makihara, Wen's, New Hope, Tianbang, Aonong, Tang Renshen, etc. will have a total of more than 20 million heads of production increase plans this year. At the same time, after the Spring Festival holiday, the domestic market demand fell into a seasonal trough, and the Lantern Festival did not bring much boost to the market, and the demand side was still weak.
However, in recent days, with the further recovery of slaughtering enterprises, and the overall shortage of moderate-weight pigs after the festival due to the pre-holiday concentrated slaughter. Coupled with the influence of weather factors and the continuous decline in #pig prices, farmers' resistance has warmed up, driving a slight rebound in spot pig prices.
Recently, the primary and secondary schools in the south have opened one after another, and the northern schools will also open at the end of the month, and the start of construction is roughly the same. It is expected that under the influence of the opening of school and the start of construction, it will bring certain benefits to the consumption of #pork, but it remains to be seen how good it is.
